{"id":41958,"date":"2023-03-01T10:00:26","date_gmt":"2023-03-01T04:30:26","guid":{"rendered":"https:\/\/www.aplustopper.com\/?p=41958"},"modified":"2023-03-02T09:40:27","modified_gmt":"2023-03-02T04:10:27","slug":"plus-two-macroeconomics-chapter-wise-questions-answers-chapter-4","status":"publish","type":"post","link":"https:\/\/www.aplustopper.com\/plus-two-macroeconomics-chapter-wise-questions-answers-chapter-4\/","title":{"rendered":"Plus Two Macroeconomics Chapter Wise Questions and Answers Chapter 4 Income Determination"},"content":{"rendered":"

Kerala Plus Two Macroeconomics Chapter Wise Questions and Answers Chapter 4 Income Determination<\/h2>\n

Plus Two Economics Income Determination One Mark Questions and Answers<\/h3>\n

Question 1.
\nThe ratio of total additional planned savings in an economy to the total additional income of the economy is …….
\n(\u0430) APS
\n(b) MPS
\n(c) MPC
\n(d) APC
\nAnswer:
\n(b) MPS<\/p>\n

Question 2.
\nIf MPS is 0.7, then MPC is
\n(a) 1
\n(b) 0
\n(c) 0.7
\n(d) 0.3
\nAnswer:
\n(d) 0.3<\/p>\n

Question 3.
\nIn an economy, C = 40, 1 = 10, MPC = 0.8, Y = 200. Then equilibrium level of income in
\n(a) 200
\n(b) 210
\n(c) 160
\n(d) 250
\nAnswer:
\n(b) 210<\/p>\n

Question 4.
\nMultiplier is equal to
\n(a) \\(\\frac{1}{1-\\mathrm{MPC}}\\)
\n(b) \\(\\frac{1}{1+M P C}\\)
\n(c) \\(\\frac{1}{1-\\mathrm{MPS}}\\)
\n(d) \\(\\frac{1}{M P C+M P S}\\)
\nAnswer:
\n(a) \\(\\frac{1}{1-\\mathrm{MPC}}\\)<\/p>\n

Question 5.
\nIn the aggregate demand function y = A + c.y, MPC is represented by
\n(a) y
\n(b) A
\n(c) c
\n(d) None of these
\nAnswer:
\n(c) c<\/p>\n

Question 6.
\nThe world wars adversely affected the European economy. Hence consumption and savings were low. But the ratio of consumption to income was high.
\na. Can you connect the above situation with any Keynesian proposition? Name it.
\nAnswer:
\na. Consumption function with high mpc.<\/p>\n

Question 7.
\nOne among the following is not a characteristic of Keynesian consumption function.
\n(a) The aggregate real consumption expenditure is a stable function of real income.
\n(b) The mpc must lie in between zero and One
\n(c) The consumption is a function of rate of interest
\n(d) The mpc = 1 – mps
\nAnswer:
\n(c) The consumption is a function of rate of interest<\/p>\n

Question 8.
\nSuppose that there is an increase in autonomous investment. If so which of the following situations represent greater multiplier effect on income.<\/p>\n

    \n
  1. a relatively high MPC or<\/li>\n
  2. a relatively low MPC? Substantiate.<\/li>\n<\/ol>\n

    Answer:<\/p>\n

      \n
    1. A relatively high MPC<\/li>\n
    2. Larger size of Multiplier.<\/li>\n<\/ol>\n

      Plus Two Economics Income Determination Two Mark Questions and Answers<\/h3>\n

      Question 1.
      \nState whether the following statements are true or false and justify your answer.<\/p>\n

        \n
      1. If MPC = 0.8, MPS will be 0.8<\/li>\n
      2. The amount of consumption when income is zero is called negative consumption.<\/li>\n<\/ol>\n

        Answer:<\/p>\n

          \n
        1. False – MPS = 0.2.<\/li>\n
        2. False – Autonomous consumption.<\/li>\n<\/ol>\n

          Question 2.
          \nCalculate Multiplierwhen MPS = 0.8
          \nAnswer:
          \nK = 1 \/ MPS
          \n= 1\/ 0.8 =1.2<\/p>\n

          Question 3.
          \nGive the meaning of Ex ante, Ex post, Ex ante consumption, and Ex ante investment.
          \nAnswer:
          \nEx-ante and Ex-post:
          \nConsumption, savings, and investment can be classified into Ex-ante and Ex-post variables. The terms Ex-ante and Ex-post have been derived from the Latin word. Ex-ante means planned or desired. Ex-post means actual or realized. In national income accounting, the variables such as consumption, investment and savings are considered as ex-post variables. The rate at which consumption, savings, and investment are presented in the ex-post sense.<\/p>\n

          Question 4.
          \nDefine output multiplier.
          \nAnswer:
          \nThe ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called the output multiplier of the economy.
          \n\\(\\mathrm{K}=\\frac{1}{1-\\mathrm{MPC}}\\)<\/p>\n

          Question 5.
          \nRepresent the parametric shift of a graph.
          \nAnswer:
          \n\"Plus<\/p>\n

          Question 6.
          \nClassify the following sentences ex-ante and ex-post.<\/p>\n

            \n
          1. Government made an investment of \u20b920,000 excess in 2017-2018.<\/li>\n
          2. A firm has decided to set up a new factory.<\/li>\n
          3. The government expects an increase in revenue receipts by 25%.<\/li>\n
          4. Cement consumption increased by 18%.<\/li>\n<\/ol>\n

            Answer:<\/p>\n